Bitcoin price has reached a new record high of $124,128, along with the growing expectations that the Federal Reserve might cut interest rates in September. This comes after July’s U.S. inflation (CPI) data, which gave markets a boost.
According to crypto.news, Bitcoin jumped 8.5% in the past week, reaching $124,128 on Friday morning in Asia before dipping slightly to around $123,197. Even with the small drop, it’s still up there at 32% so far in 2025 and more than 62% from its lowest point this year.
A day after the U.S. released its July CPI report, Bitcoin surged to new heights. The report showed annual inflation holding at 2.7%, matching June’s rate and coming in slightly below the 2.8% forecast. It also revealed that consumer prices rose 0.2% from June to July, slower than the 0.3% increase in the previous month.
After the U.S. released its July inflation report, the CME FedWatch tool, which tracks market expectations for Federal Reserve interest rate changes, showed the chances of a rate cut in September jumping to 95.8%. A Federal Reserve rate cut would make borrowing cheaper and make more money flow into the economy. This often pushes investors to buy riskier assets like cryptocurrencies to earn higher returns.
Spot Bitcoin and Ethereum ETFs have also played a major role in pushing BTC to new all-time highs. According to SoSoValue, the 12 spot BTC ETFs have attracted over $1 billion in net inflows in just the past five trading days, while Ether ETFs brought in around $1 billion in a single day on Tuesday. This sudden increase in demand has fueled strong sentiment across the crypto market, signaling growing institutional interest and confidence in digital assets.
Data from CoinGlass shows Bitcoin’s recent jump to new heights came with many short trades being liquidated, especially between $124,000 to $126,000, as traders betting against the rally were forced to close. This helped push prices up even more.
The chart also shows how many long liquidation points are clustered between $120,000 and $121,000. If Bitcoin falls into this range, it could trigger heavy selling and speed up a price drop.
BTC Trend Analysis
On the 4-hour chart, Bitcoin is moving inside an upward channel, meaning it’s making higher highs and higher lows between two rising lines. This pattern usually suggests the uptrend will continue.
Right now, the price is pulling back after hitting the top of the channel and may drop to around $120,500 by the end of the session. If it stays above this support, BTC could bounce back towards $127,000.
The 50-day moving average has crossed above the 200-day moving average, a sign that shows momentum is still strong. Overall, Bitcoin’s trend remains positive, but holding key support will be crucial for the next rally.
